Raymond James Financial Inc., the brokerage that acquired Morgan Keegan & Co. from Regions Financial Corp. last year, posted a quarterly profit that rose 41 percent on a one-time tax benefit.
Net income advanced to $117.5 million, or 82 cents a share, in the quarter ended Sept. 30, from $83 million, or 60 cents, a year earlier, the St. Petersburg, Florida-based company said today in a statement. That beat the 63-cent average estimate (RJF:US) of analysts surveyed by Bloomberg.
“Results this quarter were lifted by a beneficial tax rate and better-than-expected results in capital markets and Raymond James Bank,” Chief Executive Officer Paul Reilly, 59, said in the statement.
Raymond James acquired Morgan Keegan in a $930 million deal that combined two of the U.S. Southeast’s biggest brokerages. Capital-markets revenue increased 7 percent over the preceding quarter and asset management was up 5 percent, according to the statement.
Raymond James fell 0.7 percent to $43.46 at 4 p.m. in New York. It has gained 13 percent this year, trailing the 26 percent advance for the 81-company Standard & Poor’s 500 Financials Index.
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